Price elasticity is ________ when the urgency for a purchase is low and the number of acceptable substitutes is high.
A) inelastic
B) elastic
C) unitary
D) positive

Question

Quizplus · Accepted Answer

When the urgency for a purchase is low and there are a high number of acceptable substitutes, consumers have the flexibility to switch to other options if the price of a product increases. Therefore, the price elasticity is high, making the demand elastic.

Price Elasticity Is ________ When the Urgency for a Purchase